Thursday, June 13, 2013

Punishment Strategies for Games With Indefinite Lengths

There are many findings in psychology which seem puzzling from the standpoint of utility maximization. A favorite one is that humans are often willing to punish a wrong-doer at significant cost, even though the damage is already done. And in a "1-round game", this is indeed stupid. But this instinct evolved in a social animal that historically was in contact with the same individuals of its species for most of its life; punishing a wrong-doer after the fact still makes similar wrong-doing in the future less likely, and serves as a warning for those thinking about it.

It is likely that similar puzzling findings in psychology, which are puzzling when viewed in a one-round game, are actually utility-maximizing when considered in the context of longer time spans.

Words to Live By

"...there is good and bad speculation, and this is not an unparalleled activity in science...Those scientists who have no taste for this sort of speculative enterprise will just have to stay in the trenches and do without it, while the rest of us risk embarrassing mistakes and have a lot of fun." - Dan Dennett